Is Climb Global Solutions, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Climb Global Solutions, Inc. has moved from very expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, supported by a P/E ratio of 24, a PEG ratio of 0.25, and an impressive ROCE of 49.04%. In comparison to peers, Alliance Entertainment Holding Corp. has a P/E of 23.93 and a PEG of 0.0143, while Taitron Components, Inc. shows a P/E of 20.90, highlighting Climb's relative valuation attractiveness.
Despite recent stock performance showing a decline over the past week and month, Climb Global Solutions has outperformed the S&P 500 over the longer term, with a remarkable 335.83% return over three years and 461.23% over five years. This strong historical performance reinforces the notion that the stock is undervalued relative to its potential growth and profitability metrics.